Fund managers including Endeavor Asset Management, Blackwattle Investment Partners, Yarra Capital Management, ELM Responsible Investments, Pendal Group, Antares Capital, Milford Asset Management, Maple-Brown Abbott, Smallco Investment Manager, Hyperion Asset Management, Lakehouse Capital, 1851 Capital, QVG Capital, First Sentier Investors, Infinity Asset Management, Solaris Investment Management, Airlie Funds Management, Forager Funds, Paradice Investment Management, TMS Capital, Equity Trustees Asset Management, Ellerston Capital, Vinva Investment Management, ECP Asset Management, Oracle Advisory Group, Ten Cap, Mint Asset Management, Market Partners, Quest Asset Partners, Atlas Funds Management and Vertium Asset Management have invested in Xero Ltd (ASX:XRO).

Fund managers highlight Xero's US expansion, now led by a Silicon Valley-based management team, and the opportunity to cross-sell payments through the Melio acquisition. Pendal noted the FY26 result beat expectations at almost every line, and Ten Cap argues regulatory complexity in accounting and tax keeps trusted platforms relevant.

Market Partners believes Xero paid too much for Melio at the wrong time, while Ten Cap notes the long-term outlook is being questioned. Pendal observed the shares fell as AI-driven competition, including Anthropic's Claude for Small Business, weighed on sentiment, alongside a softer result from competitor Intuit.

Xero Ltd. provides cloud-based accounting software and business management solutions for small businesses and advisors. Established in 2006 by Rodney Kenneth Drury and Hamish Edwards, the company is headquartered in Wellington, New Zealand. Xero operates through two primary geographical segments: Australia and New Zealand (ANZ) and International. The company focuses on delivering scalable online tools to streamline financial operations and improve business efficiency for its global client base.